Third quarter is a key time for extreme weather events. Here's what to expect for exposed stocks

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Climate experts expect 'El Niño' in 2023.

The third quarter is a key time for extreme weather events. And there's a bevy of stocks across the utilities and insurance spectrum that could be impacted by what Mother Nature has in store. An El Niño weather pattern is widely expected for 2023. It means that sea surface temperatures will be periodically warmer in the east and central area of the Pacific Ocean, which has a knock-on effect on the Pacific jet stream. This typically means Canada and the northern U.S.

mountain The two Australian insurers' U.S. shares over 2023 A 2023 hurricane trade? This year should be a fairly typical one for hurricanes, as El Niño is typically linked to a less severe season. On the market front, JMP analyst Matthew Carletti doesn't see a clear trade like there has been historically. The trade normally goes something like this: Around mid-February, reinsurance stocks with catastrophe exposure take a dip in valuation as investors ready for the season.

 

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